Pharmaceutical exports to Venezuela account for 0.02%

Korean drug exports to Venezuela totaled KRW 2.2 billion last year, showing volatility over the past decade

Most exports are structured as bundled regional contracts with neighboring Latin American countries… Minimal impact on pharmaceutical exports

Korea’s pharmaceutical exports to Venezuela totaled USD 1.53 million (approximately KRW 2.2 billion) last year, leading to projections that the impact of the recent U.S. military operation in Venezuela on Korean drug exports will be limited.

According to the Korea Customs Service, on January 6, Korean pharmaceutical exports to Venezuela through November last year amounted to USD 1.526 million. This represents just 0.02% of Korea’s total pharmaceutical exports (USD 7.92788 billion) over the same period.

Domestic pharmaceutical exports to Venezuela have fluctuated significantly over the past decade. Export volumes stood at USD 3.25 million in 2016, plummeted to USD 130,000 in 2017, rebounded sharply to USD 5.13 million in 2023, and then fell again to USD 650,000 the following year.

Despite these fluctuations, Venezuela’s share of Korea’s total pharmaceutical exports has consistently remained below 0.1%. This is why the impact of the U.S. military operation in Venezuela is expected to be minimal on Korea’s pharmaceutical exports.

The assessment is that the geopolitical variables affecting neighboring Latin American countries are also unlikely to have significant ripple effects. Domestic pharmaceutical companies primarily sign bundled regional contracts to supply medicines, covering multiple nearby markets like Colombia, Ecuador, and Peru, rather than exporting to Venezuela on a standalone basis. Under this structure, shortfalls in one country can often be offset by volumes in others, mitigating overall contract risk.

However, given that Venezuela was mentioned as a competitive export region for domestic P-CAB class gastroesophageal reflux disease (GERD) treatments alongside neighboring Latin American countries, the possibility that it could act as a mid-to-long-term variable has been raised. Relevant companies are closely monitoring developments.

HK Inno.N is aiming to expand its flagship GERD drug K-CAB into 18 Latin American countries, including Venezuela. In 2018, the company signed a finished-product export and distribution agreement with major Latin American pharmaceutical company Laboratorios Carnot, covering Mexico, Venezuela, Colombia, Peru, Chile, Ecuador, Uruguay, Paraguay, Bolivia, the Dominican Republic, Guatemala, Honduras, Nicaragua, Costa Rica, Panama, and El Salvador. Subsequently, in 2022, it added a technology transfer agreement with Eurofarma for Brazil.

Onconic Therapeutics has also established a supply structure for its GERD drug Jaqbo, following a technology export agreement with Mexican pharmaceutical company Laboratorios Senosiain, covering 19 Latin American countries, including Venezuela.

Daewoong Pharmaceutical is actively pursuing Latin American expansion for its P-CAB drug Fexuclue, aiming for global expansion into 100 countries. The product has already been launched in Mexico, Ecuador, and Chile, with regulatory applications submitted in Brazil and Peru. While no official entry into Venezuela has been announced, a regional strategy encompassing neighboring countries is being considered. Daewoong previously employed a bundled contract strategy with local partners for its botulinum toxin product ‘Nabota’ in Latin America. 

An industry official stated, “Exports of pharmaceuticals to Venezuela were already limited in scale, and the contract structure was mostly regional agreements. It seems unlikely that this situation will have a direct impact. However, considering the geopolitical risks surrounding the Latin American pharmaceutical market in the mid to long term, companies should review export routes and contract structures.”

The United States launched military operations on Venezuela's capital, Caracas, and other locations in the early hours of the 3rd (local time). President Donald Trump announced via Truth Social that they had successfully captured Nicolas Maduro. Regarding the reason for the operation, President Trump stated, “Maduro committed narco-terrorism crimes against Americans, and he will face justice. The United States will govern Venezuela until the regime change, and Maduro will face U.S. judicial proceedings.”